Introduction to Economics – Part 5 – Murray N Rothbard

Part 5.

Introduction to Economics: A Private Seminar with Murray N. Rothbard

The entrepreneur is the major risk bearer. Business return on capital is long-run profits or losses. Real rate of interest is determined by time preferences. Government contracts are cost plus. Medical costs are higher because supply is so restricted by government intervention. Who benefits?[by government action]. Rockefeller families are heavily invested in drug companies. Cartelism. Monopolies. Yet, free market productivity causes prices of goods to drop, e.g. computer products.

How the history of the business cycle starts. War stimulus, famine, were outside the market and not cyclical until around 1750. There then began to be wave-type activities. The Industrial Revolution and fractional reserve banking spread. Were these the causes of cycles? Were sunspots?

Part five of seven from Introduction to Economics: A Private Seminar with Murray N. Rothbard.

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which was profit quote-unquote our
00:02
interest comes from and why the worker
00:05
of lanlan like hey this is fiercely even
00:09
a world certainty is leaving no change
00:12
no risk
00:12
the second thing of course the temples
00:14
realizes and pays the money now and
00:16
takes the risk in a real world certain
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that you have the situation where I
00:23
produced the SL car nobody buys it or
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whatever
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so does a tremendous risk on the
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interpreter businessman becomes the
00:30
major uncertainty bearer the worker in
00:33
the landlord gets the money now or ally
00:35
either this one concert they got the
00:37
payment right now and the heparin or
00:40
takes the pumps off the show remove the
00:43
burden if this uncertainty or the risk
00:44
so what your hand that is the return on
00:48
capital the business return by this and
00:51
sexually in a tube marks the long run
00:52
proper normal natural profitable
00:55
national interests which is something
00:58
like eight percent whatever it is again
01:01
it’s very difficult spotted in purely
01:04
financial interest time preference and
01:07
there’s a profit purposes successful
01:10
forecasting pure profit plus losses are
01:14
– losses of the time as the enterpreneur
01:17
so this is a risk component which is on
01:23
top of them is a vector on top of the
01:25
natural rate of interest so I think is a
01:29
useful analysis is that we never get the
01:31
final kilogram by talking about
01:33
equilibrium words no there’s no change
01:34
there no uncertainty we can then
01:36
separate out sexually but the capital
01:39
structure will be on short type
01:40
reference of what it is on profit and
01:42
risk uncertainty so that’s the end of
01:46
the analysis illustrate an analysis of
01:47
where this returns
01:52
Orthodox economics are sort of
01:54
grudgingly stuff that some of the time
01:56
crackers we’re not very much
01:57
chilly none time market analysis Wow
02:08
solely the effect of the cost curves are
02:12
the same as the chemical the tendency
02:14
all that I think it’s enough to
02:16
scholarly perfect competition people I
02:19
also fight course of their business is
02:22
short there were never any cool agree
02:23
another point and so in real worlds
02:27
always promising losses and whatever it
02:29
is no way you can prepare tangency there
02:31
ain’t no ten juices even when I thought
02:33
there was smooth curves right here
02:38
nothing can be proved on my the other
02:42
one do you think one run cost curves
02:54
revenue any blacks I thinks it’s more
02:57
makes more sense than average stuff but
02:59
any right the young the course there is
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the fine usual course I’m going to start
03:05
with zero pretty something as so usual
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cost ever the ticket something like that
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total cost well Hannah this this assumes
03:18
of course I mean you take any human
03:20
production increasing 10,000 rows of
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Wonder Bread impossible costs are
03:24
infinite if you want to keep racing and
03:26
horse you can do it so what this is
03:27
really is an envelope of minimum total
03:30
cost of what what was the absolute
03:33
minimum that could be introduced to
03:35
stock for something because their proper
03:37
returns your profits
03:39
equal total revenue minus total costs
03:42
you’re interested in keeping a
03:44
difference as high as possible and
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getting into
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so there’s a campus of the whole bunch
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of possible cost the market economy
03:55
versus business back so to speak that
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keep them as low as possible
03:59
I’ll impress with me and refractions not
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doesn’t have these triggers in the free
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market
04:03
thanks for example furnish specialize in
04:05
government contracts there’s a very
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different situation now courage the
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government contracts needs the United
04:11
States are so-called cost plus any one
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of my paper clips from anymore fans or
04:20
missile whoever has to be we will pay
04:22
you cost or be courses plus narrative
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properly for Senator Persaud whatever I
04:27
notice what this means Cost Plus in any
04:30
course importantly anyway that’s the
04:32
part well it becomes to your interest
04:34
under the three forces on the ballooning
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upward if you remember it’s very easy to
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do it varies flow and taxpayer gives you
04:46
a guarantee I see all sorts of things
04:51
happening we’re in more content defense
04:55
contract forms there is so rewarding and
04:57
labor if you need if you’re an
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engineering firm others producing
05:02
something the US government if you
05:04
really need is your private firm uh say
05:06
to hire 50 engineers why not hire 50
05:08
what the holiday as well keep them
05:09
probably sitting around I believe that I
05:11
have a peak week where they overwork
05:12
like man thought might be playing poker
05:15
the other sixteen one we see here
05:16
because of the course that you painted
05:18
what he just corporative over the
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village of different Pentagon over the
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American government now pay the
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guaranteed cost plus the profit so the
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cost then talk about wasted resources
05:31
these people worry about tangency on the
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course purpose is more real the real
05:35
problem and so this is this is the this
05:41
is the problem of course where the thing
05:43
week and all this is something it for
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example usually
05:46
they’re engineers be full-page n to
05:49
taken out week one engineers in
05:50
California well these days here recoup
05:55
by the government this is a reasonable
05:56
Costigan show with the press department
05:58
name advertising Franklin here and this
06:01
week coop it’s a lie not to tell me
06:02
sky’s the limit
06:04
anything you wish the suckers they are
06:06
mechanical grant you’ll conclude upon
06:08
your cost and then of course is a cozy
06:12
interaction I’ve talked about antitrust
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away before the fee the Pentagon for
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that will retire a full penny whatever
06:20
medicine insane in Matthew after twenty
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years service general you then become
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vice president in charge of procurement
06:28
part of sales are Lockheed or Boeing or
06:31
something something singing planes in
06:33
this was the old buddies in the Defense
06:34
Department and it’s a sort of
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recirculating things everybody watches
06:40
everything except the taxpayer
07:04
it’s not funny given the procedure
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discussed us to some extent in this it’s
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just a question once you write different
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set of warnings and you get very strange
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effects absolutely they there seems to
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be no limit on that the man dispersed
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the medical profession is concerned
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whatever they pay was paid you just hit
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the mic you look at the inflation record
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of software you see them next year’s 5%
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of something medical cost 15 to support
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always skyrocketing which are even
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regulation rights why is that well you
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have to buy the government each state
08:12
government coordinate of governments
08:14
this is the man Curtis applied for
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supplies to push the way over into the
08:19
left this is the real problems on top of
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that cost curve gonna lower this is Lee
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which way down from the government steps
08:27
in and excludes people remain doctors
08:29
great simple operations licensing to
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licensing requirement especially a prime
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on licensing hospitals the requirement
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comes you only need not I see practicing
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physician if you were graduated from
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certify hospital for summer breakfast
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and the government I think by happen in
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1910 this whole thing swept in I think
08:54
10 to 14 government put out of business
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the state governments as they suppose
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literally
09:01
and I qualify you’re on this area you’re
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deficient
09:09
right well the whole thing is put
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through I am in cooperation with
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government and the state like New York
09:16
State for example well turnover turns
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over means they don’t have a hospital
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licensing for what they call the staff
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and land maybe my ass ain’t made a snap
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and they put on these crazy requirements
09:29
maybe they cut the quota
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each medical school like a piece of your
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quota only whatever when we have 40% of
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the doctor to apply better than a lot
09:39
well that sort of stuff they cut the
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number of doctors and moments that come
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in other hospitals and and of course
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this time they’re gone very quickly
09:50
supplies cuts ability the left with the
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price goes up and and the physical when
09:56
the positions were pushing for this bit
09:58
of it they said this is this is an
10:00
economic problem I just America probably
10:02
need more vodka is not getting
10:03
sufficient family living west attrition
10:05
was with me that’s what they would like
10:07
to become a customer and so sure enough
10:10
of the number of doctors per person the
10:13
United States now half of what I was
10:14
like 8 10 the whole thing follows and
10:18
the interesting enough the parcel of
10:23
medical professionals the most
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restricted the most monopolistic I said
10:26
are those most time of hospitals so that
10:30
the more Hospital oriented the doctor is
10:33
the more anomaly gains these guys
10:36
surgeons for example course totally not
10:38
go around they’re getting most of them
10:39
you look at the guys who run the
10:42
American Medical Association Association
10:43
oral surgeon Michael surgeons surgeons
10:45
better people or like I’m the only
10:47
terminus or dermatologist that will
10:51
certainly the surgeons are not getting
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the lion’s share of us their hospital
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they’re totally based on the hospital
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and access the hospital key yeah and
10:59
psychoanalysts were part of a mental
11:01
hospital but much less monopolistic much
11:04
Wes was kind of like dirt covered a lot
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of them left and one of the things being
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in hospital oriented the does other ways
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that you’re allowed to price
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discriminate there’s nothing wrong with
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mice discrimination is a ceremony but
11:17
surgeons remember we knew that there’s
11:20
no competition for global competition
11:21
Isis gonna I mean you find out what them
11:24
take for any given appendix operation
11:27
you find out what the incumbent is a
11:29
soccer accordingly so the wealthy
11:33
patient takes much more for the nose the
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peanuts dentists and that is essentially
11:46
the same fight for a treat every patient
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if they haven’t got the opportunities a
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little anomaly honey right so that’s
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that’s one one thing that of course you
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did you say the demand curve but medical
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insurance either government or private
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third party insurance these sure insurer
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pays we paid any medical cost plus
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dollars whatever we’ve an evening doctor
12:09
charges well how do you have a like an
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it’s headed into the doctor in charge of
12:15
anything the insurance company pays what
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the hell ice doesn’t care
12:19
got sure Isis so as a result people are
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not insured few people here and they are
12:24
new trust Aziza society got my shaft Oh
12:29
shucks complex Konami pay but they yeah
12:34
of course it’s trivia the cost areas of
12:48
the hospital is their son Burt sprays
12:51
them at the moment kindness is when you
12:53
go to the drugstore and get a can of
12:54
sorbet that’s all you needed and you say
12:56
that past four dollars this is straight
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right so you have simple short of their
13:01
possible though same stuff another thing
13:07
that happened willing when they have to
13:08
medical schools were put out of business
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there’s warfare with within the medical
13:13
profession so what I want to think only
13:16
a pass in other words the halibut
13:19
announces now force taking over our now
13:20
armed us took the opportunity not by the
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way coincidently that totally crush them
13:26
the homeopaths most of the Wow service
13:36
animal doesn’t it something tangentially
13:38
homeopathic Caroline and I’m excited to
13:42
them probably managed certainly much
13:43
more lovable they obviously can’t hurt
13:49
anybody anything I’ll pass a little bit
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of that in other words you go to the
13:54
homeopath the only people are rather the
13:56
only homie hasn’t either European
13:58
embrace this will happen
14:06
yeah yeah what’s the basis maybe give
14:13
very very small doses he needed routine
14:23
Wow sexy go in the homeopath has got
14:26
millions of different little bottle
14:28
I know it’s ugly ladies the and the
14:38
homie has to stay on talk to me a little
14:39
wavelength visitor the theory is that
14:41
your personality on each different
14:44
personality gets different nerves not
14:48
guys’ finally finally refreshing itself
14:51
so I didn’t say ok doses of this and
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come back at two weeks Gus and talk to
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you to say in any are you a nervous type
15:00
are you optimistic or whatever
15:01
according to the personality time you
15:03
usually team different keen even worse a
15:05
teeny teeny obviously can’t hurt pretty
15:08
clear even how it hasn’t been that did
15:10
you say it’s a racket because it doesn’t
15:12
help anybody to say and also great
15:18
almost cost less but you get this damn
15:20
thing Tino models and they’re five bucks
15:23
we’re looking about if there’s five
15:24
years of treatment probably know almost
15:26
zero of course and pharmacists hated and
15:32
and more than that they’re cheap because
15:35
there are natural herbs to pick them out
15:38
on the ground side very cheap the teeny
15:40
doses in they’re cheap and whereas the
15:43
help a specialized ascetic drugs really
15:45
expensive as it manufactured by drug
15:48
companies okay see how a whole different
15:51
economic culture the Alec pan go to an
15:55
allopathic me present my no friend of
15:57
moment I’ve seen a few years they have a
16:00
lot of Venus
16:02
they’re getting heavy doses of insulin
16:04
when the old woman passes are all and I
16:09
said here’s that book instead here’s our
16:10
stole a little bottle okay five years
16:14
worth those throw away the insulin Curia
16:19
only threw in something great shake
16:21
there the sense I’m not saying see the
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work for every night back I’m saying it
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wasn’t next to my one visit allow me –
16:28
five three dollars and five years worth
16:30
of stuff so the doctor is taking it
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about company hey it people investing
16:36
about companies that it promises hey
16:37
right so these people were put out with
16:40
the Liberty product business at the time
16:41
in 1910 that they were considered
16:43
equally respectable in Alabama fierce
16:45
competition and they all had that
16:48
terrible government
16:54
yeah they’re right from alcohol
16:56
positions greatness now there’s another
16:58
aspect of this which I believe me into
16:59
something and II cannot be an economist
17:01
and there’s an economic aspect of
17:03
history so to speak who benefits that
17:08
question who benefits by government
17:10
action for example obviously Alan has
17:14
been who else okay you have a situation
17:16
of sleep the report comes in a 1910 in a
17:19
fleshly report which said written by
17:23
screaming beloved figure in dr. Abraham
17:25
Flexner who’s not a physician or or an
17:28
educator he never comes here Isis big
17:31
report on medical education putting out
17:34
of business and assesses advice the
17:36
smallest state government spy business
17:38
by was only our path everybody else so
17:41
who wasn’t whatever was he comes and he
17:43
was in principle headmaster of some high
17:45
school no training in us
17:47
not why is he become thee guy makes this
17:50
big report well because he was a report
17:53
was financed by the Rockefeller
17:54
Foundation carnegie foundation
17:55
especially Rockefeller Foundation and
17:58
his brother Douglas Simon’s about flex
18:00
it wasn’t doctors than had one of the
18:02
big shots of our thought okay we got the
18:05
pattern ministry murdered for those of
18:07
us who were pattern oriented or as
18:09
friend of mine says they don’t believe
18:10
in the next dental theory of history
18:13
bubbly the life is random so the the
18:17
Rockefeller family is heavily invested
18:19
in company invested in it right
18:23
Rockefeller Institute the medical
18:24
research for the most amount of money in
18:26
drug research and this we have
18:32
interesting pattern early with the
18:33
Woodley the album pass put the only type
18:37
of business and has been specializing in
18:40
Rockefeller drug company products
18:48
business medical operation it’s quite
18:53
tell us something
18:55
that’s what I think it works most of the
18:56
time as we get back to the sketch never
18:58
very well last time about what response
19:00
was responsible for statism I know
19:02
things out two of them I think the sort
19:03
of thing slicing the sort of cooperation
19:06
but use the government we have patronage
19:09
to put the other guys who are
19:10
competitors out of business known as a
19:14
government business partnership anyway
19:17
so that that’s the you know that’s why I
19:23
should give me one more example we
19:24
license tangential it’s a beautiful
19:25
example I love it
19:27
New York City look problem we only
19:31
nineteen thirty here big depression and
19:33
those days most note was sold by local
19:36
farmers and local grocery stores and I
19:39
came in big big
19:43
can write huge places now yeah and
19:47
they’re poor taps to the consume we go
19:49
to the grocery store a mom-and-pop store
19:51
wasn’t a supermarket legal is an app we
19:53
bring them on give you them they went
19:55
out the milk
19:56
it was also born in Sheffield early to
19:58
buy own company bottling we’re going to
20:00
have to of course not twice to go back
20:01
to the other milk so cold least milk
20:04
well Borden everybody was so just suffer
20:07
in the pressure and York City Health
20:10
Department one day is decided no they
20:14
said loose milk is unsafe you know we
20:18
have spoken there’s nothing safe and the
20:20
forms of say it’s not let’s say nobody’s
20:22
nobody’s in sick you can’t prove it rob
20:23
walenta Commission committee many
20:29
exports that’s right to decide whether
20:31
do smugglers house is unsafe in flat
20:33
committee many of seven people haven’t
20:35
home I hope they don’t fascinated by
20:37
this of the committee one guy was a big
20:42
shot rewarding company I got an eviction
20:44
up Shephelah cops three others were big
20:47
shots of the little banks fine
20:49
independent she’s seeking foundation
20:52
they meet for a few months they come in
20:54
collusion move oh we gonna say to don
20:56
the outlaw post takes pumped up and
20:59
farmers saying no no it’s what they
21:01
Kelsey who anything they said well the
21:02
only thing it might possibly say the
21:04
dipper land they dip it’s not sterile
21:06
he’s now working on a sterile difference
21:08
he must make me sterile differently you
21:09
can’t say anything
21:10
it’s a too late tough and then we spoke
21:13
about Lucifer was outlawed in New York
21:16
City that price nearly doubled supply
21:19
curve comes tremendous thing to the left
21:21
and mice doubles and poor people can’t
21:24
afford a milkman set off this is only
21:27
deal
21:27
partly one of the aspects in the other
21:30
aspects both fair state beginnings in
21:33
welfare state so ok mocha and the New
21:40
York City Health Department probably to
21:41
this day has a record
21:44
vice-chairman of it are always in and
21:46
out a little mind fun other words the
21:48
head of the New York City Health
21:49
Department is a former vice president
21:50
Bell Bank funnies there for three years
21:52
ago stackable microns president that
21:54
sort of a custom in and out so while the
21:57
bank funding is totally only by the
22:00
warden comment about more than people
22:01
mr. Ward mr. bill Maccabees the owner
22:03
reporting company
22:05
sometimes I’m an eagle package so so we
22:10
have independent objective backing free
22:12
research boarding competitors to be turn
22:20
out to be warden people I told his story
22:24
was on the libertarian loop about ten
22:26
years ago at Sinai Medical School a big
22:28
shot that I go score New York they
22:30
actually it’s a lectured to the class on
22:32
medicine government so I was talking
22:34
about all this stuff about licensing I
22:36
never got these little story about New
22:37
York City little bank so I was telling
22:40
the kids the libertarian kids
22:41
anthracite’ this great story so for them
22:43
which meant I’m gonna tell up this is
22:45
jino official walk what we like it and
22:47
tell because everybody I will pay on
22:49
every every professor of the community
22:50
medicines of for most of course was
22:52
given every professor Community Medicine
22:55
Department and that’s I about payroll in
22:57
the microcosm of the way the world works
24:28
everybody they loved country different
24:33
very salty and everybody their finger
24:38
coming
24:39
this is window down the road little
24:42
teeny little and almost slightly
24:45
different different state government
24:57
because the larger be Packers
24:59
that’s not an outgoing Eagle they’re
25:01
unsafe there of it on the OSHA
25:02
requirements so anyway it’s so that’s an
25:28
enormous amount of stuff like that so
25:29
it’s kind of fascinating because the
25:31
real problems are not boss anymore by
25:39
monopolies like that wash seeds I guess
25:41
well that’s break before afters because
25:46
I want to get to micro stuff and anymore
25:50
about micro competition yeah
26:14
insane me they told me what
26:16
happened that way on the market but a
26:17
really efficient way of doing I can’t
26:19
see I can’t really natural I say the
26:33
merge is going to achieve in the
26:34
marketplace they don’t make it my cause
26:39
a bit of course y’all all these smooth
26:41
costing us crazy because I know somebody
26:44
has one extra machines you could use one
26:46
more than in the cut the cost is gonna
26:48
start to get sort of it you share there
26:50
and then there’s actually something
26:53
right oh sure could be a whole bunch of
26:58
you and Jackie which is by the way more
27:03
much more realistic than the smooth
27:05
Couric thing you have a whole bunch of
27:07
horizontal a little bit you don’t know
27:08
where the heck you are
27:11
thank you
27:12
you never know whether your horizontal
27:14
part of falling part or whatever yeah
27:17
that’s absolutely true
27:19
yeah there’s this uh then I keep the
27:23
uneven so hold on axle monopoly to all
27:24
you speak we used to get some of the
27:26
tall international you have to have one
27:28
company otherwise because otherwise have
27:31
twenty phones and
27:32
turn that wasn’t wrong even though that
27:35
current technology that wasn’t really
27:39
true anyway and I forget now what the
27:41
answer was that maybe 20 or 100 years
27:43
ago it was true and now of course would
27:45
you guys like there’s a lot of
27:47
satellites in there I might go away
27:48
online you’ve got capacity that
27:51
collaborate and they’re the same people
27:53
so you don’t have to have a whole bunch
27:55
of different phone companies all the
27:56
same they’re common Kaitlin well you
28:00
know what resting is that just in the
28:02
past few years we may let private
28:04
companies sell to the one market it’s
28:06
incredible how much the technologies in
28:08
Korea in fact it came to the point that
28:10
I and I have I have a small telephone
28:12
not just laying onto the table doesn’t
28:15
basically it just has a cord that goes
28:17
to the wall and and this thing is like
28:20
what was it I think it was like 12
28:22
dollars at the very very most they’ll
28:25
choose to charge like hundreds of
28:27
dollars they’re actually for this time
28:28
equipment no not only that they’re
28:30
they’re coming up with with cordless
28:32
cordless telephones are getting cheaper
28:34
and cheaper and cheaper and if you think
28:36
you know if they let that go a long time
28:38
but we probably wouldn’t have cable jobs
28:40
they don’t have had transmitters
28:42
neighborhood yeah and you know I’ve
28:44
heard people complain about well I mean
28:47
then people would be monitoring the
28:48
telephone messages but think tell food
28:53
they don’t really have telephone lines
28:55
generally from let’s see London Ontario
28:57
to Toronto they have microwave
28:58
transmitters and I know people who have
29:00
set up equipment so that they can wander
29:02
the microwave transmitter I mean you
29:04
know we were not really Leslie I think
29:07
one of the easiest things to get to
29:08
convince before that is if you’re really
29:10
not protected
29:19
and now they were noting the cellular
29:22
radio supposed to be here a year so
29:23
every single person a trauma
29:28
yeah it’s great
29:31
they didn’t dependent industry that
29:33
creature that competition we’re thinking
29:49
about telephones in a conventional sense
29:53
as opposed to means of communication and
29:56
around our singers and means of
29:57
communication as does when in Austrian
30:04
economics is that address sufficiently
30:12
absolutely the only one who distress it
30:14
that’s everybody else again this goes
30:17
back to their whole discussion about
30:18
what’s a good the trust economist would
30:22
say well whoa look at the industry in
30:24
this because to supply firms it’s gear
30:26
shift or whatever and the term thing
30:28
only five for five from to producing 80%
30:31
of the gear shift they’re gonna break
30:33
them up if you’re winding the definition
30:35
and one good thing of the uses yeah well
30:38
sense of the 2004 concentration of ratio
30:42
that’s much lower so it all depends on
30:44
how narrow you would make the mass right
30:46
now so core concentration richer one of
30:48
these things in
30:49
people the terrible things are five
30:51
firms with top three firms we’re gonna
30:53
have more than next December that’s
30:55
opportunity arbiter of sales and
30:58
somebody have just widen or narrow
30:59
definition also good is make it very
31:03
narrow good you can have immediate ramp
31:05
of course wonder resident so not one
31:07
that nobody else if it is Wonder Bread
31:08
anyhow it does is it a feeling the
31:10
property rights so break it up with
31:13
something Wonder Bread is 100% of the
31:14
bread more thing but if you stress a
31:21
little bit the white bread you got a
31:22
whole bunch of stuff make you stretched
31:23
more wine pumpernickel and rolls and
31:25
baking his so a concentration purely was
31:29
all mirrors they’re definitional
31:30
economists they all compete in
31:33
everything consumers are for example on
31:37
vacation as a vacation market people go
31:39
on vacation hotel us my people each
31:41
other they also have people other hotel
31:43
there won’t be Rock cruise nail curbing
31:45
cruises it was going to be with airlines
31:47
travel to other places as a whole bunch
31:50
of pensions yeah whole bunch of stuff
31:54
that’s good being and I meant being
31:55
driving hotel trucks and all that sort
31:58
of stuff so yeah so that’s that’s one of
32:02
the insights
32:09
Oh Ellen 6i most of my cartels that
32:11
something mentioned it back the
32:19
generally I think it’s a gentleman this
32:21
I think accepted my other free market
32:23
people in Australia the cartel don’t
32:25
work several government imagining can’t
32:28
kind of survive a free market and for
32:32
two basic reason you having a bunch of
32:34
people get together on kind of on
32:35
regular front of Michael Ende or said
32:37
every once in a while lots of clean
32:38
everyone sparkly needles got together I
32:39
say gots jack up the price and let’s you
32:42
know let’s agree in somewhere so on he
32:44
says somebody somebody only breaks even
32:46
wait until they goes out there cuts
32:48
price like ten percent will pick up
32:50
sales we all those suckers and I haven’t
32:51
got that right you’re back to the race
32:53
says constantly happens and I mentioned
32:58
saves a single particle history of the
32:59
world exist in the free market writing
33:01
like that I’m constantly bringing now
33:03
either because the internal firms
33:07
tremendous pressing out any but let’s
33:09
say they have to cut production in order
33:10
to raise price that you won’t we do that
33:12
there’s a ball thing I think we okay
33:15
will comfort us my temper some crazy
33:17
shipments whatever happens today well we
33:19
do this and no reason place my twenty
33:22
percent will be better off and so what
33:24
happens then is everybody senses I can
33:27
secretly cut the price pick up enormous
33:31
amount 20 percent my own secret it’s not
33:37
a secret price pipe and what I think you
33:39
say think one of the first things is our
33:40
Clayton acting I’ve got trust an outlaw
33:42
it was secret price by the name of
33:44
enforcing competitions it’s never
33:47
happening to speak there’s gotta be
33:48
public of course that means you can’t
33:50
break my heart stop
34:01
in a free market box we got all the
35:03
stuff one when I remember my fifties
35:17
when the German journey compulsory parts
35:19
out early pioneer in the welfare state
35:21
the warfare sleep under Bismarck and
35:23
everything else and confining the
35:25
postman carts help every use every steel
35:27
firm was forced to join steel cartel etc
35:29
the strict reduction way to price have a
35:31
high power to keep them out so after
35:34
World War Two the airborne regime
35:35
eliminated of that and the name
35:38
compulsory cartels so the argument of an
35:40
old car tell us was those I get those
35:42
they said we need upholstery car cause
35:44
we don’t have compulsory car thousand
35:45
one big thermal and take over a mountain
35:48
PA everybody driver gotta the wall be
35:49
monopolistic
35:51
so in other words when there was singing
35:53
is let’s see let’s just even assume not
35:55
have let’s say one big steel front
35:56
finally emerges after 20 years or
35:58
they’re more efficient but the part
36:00
Ellis is saying and it be handsome crush
36:02
efficient plus gifting have a postcard
36:05
classic we have to worry about possible
36:07
future of efficient monopolies and
36:10
impose instead of no to guard against
36:11
that oppose inefficient pulse rate
36:13
monopoly right now that’s the argument
36:14
totally insane I mean why am i 90 why
36:17
anybody without already miss me but the
36:20
thing is you some proof of their
36:21
efficiency my competition is my block a
36:23
you know she’s watching the room
36:25
he’s got a computer inside it it’s more
36:27
powerful than the first and they’re
36:29
trying to computer produced by idea back
36:31
in 1950 whatever it was it cost a
36:33
million dollars
36:34
prep times the chief engineer you know
36:35
cuz what about men I think so apply see
36:39
that’s great
36:40
excellent ridiculous an agency doesn’t
36:43
how much is across the produce that’s
36:45
their means exactly yeah I mean you know
36:48
the amount of competition there is I
36:50
mean this calculation will walk ten
36:52
bucks down was this libel used to cost
36:55
that money which is early so blue quit
36:56
samatha right there ever the old company
37:01
remember the old calculating machine
37:02
that I was going to college any massive
37:04
calculations freedom becoming away in
37:13
this way only slightly faster than your
37:16
own
38:33
full keyboard machines in any but you
38:42
learn to do
39:06
we do mammoths seminar and a lot of
40:01
people ask me why I’m gonna cover the
40:02
static videos I probably get the opinion
40:05
of people here well copy things you like
40:07
to have coverage those of the time this
40:09
is sort of macro
40:46
you know being placed yeah just just
41:01
call a mystery of banking public spice
41:05
Richardson Snyder distributed through
41:07
duck
41:46
take why don’t you sing as a hedge their
41:49
history wasn’t a cycle how this thing
41:51
starts the interesting book by listening
41:53
Mitchell which I don’t endorse
41:55
interesting something there called
41:56
business a cycle of a problem in a
41:58
setting came in 1927 it’s talking about
42:03
reporting on another investigation by
42:06
English economics drawing a WR Scott and
42:09
Scott went back way back to 16th century
42:12
15th century and looked at business
42:14
analyst in other words what the love
42:16
doing financial pages and memoirs or
42:19
whatever try to figure out state of
42:22
business activity what was it was those
42:23
things the press are they prosperous or
42:25
whatever essentially he found something
42:26
like this that were Marcus there was no
42:42
aluminum King confiscated half the gold
42:50
on the kingdom’s a big depression or as
42:56
a war could be steady on us more cuts
43:00
all of training depression where
43:07
something happens to the business
43:08
activity where it’s clear everybody what
43:10
the cause it was almost always the
43:12
government war or you survive the family
43:16
like that mostly King Thomas case
43:18
King Wilson confiscated money
43:20
confiscated it so there was no business
43:24
cycle that was things to our peg alone
43:26
more or less evenly and then something
43:28
something happened that these are
43:29
exogenous causes outside the market so
43:34
these were these were not anything sick
43:37
or anything she’s a comfortable with in
43:39
the market I think scary obsessive how
43:41
comes then around 1750 to be very very
43:46
vague about it starting with in England
43:50
then continuing that spreading that
43:51
stays later enacted late 19th century
43:55
really nice in Western Europe began the
43:58
curious situations our regular type what
44:02
you like fluctuations in business
44:03
activity something like this and this is
44:11
peculiar because it doesn’t seem to be
44:13
any specific core you can identify it
44:15
say okay the wards the kingdom
44:18
confiscated someplace the famine or
44:20
gravity that seemed to come from within
44:23
them the business of market system and
44:27
two things happen at the same time to my
44:31
he might be institutional changes one
44:34
Industrial Revolution so there’s a
44:37
financial century so that the market
44:39
economy spreads and have
44:41
industrialization and the same time the
44:44
banking system pops up fractional
44:47
reserve banking starting with me Bank of
44:52
England in 1694 any other countries been
44:57
18th century so in other words the lives
44:59
of the banking system starts at about
45:03
the same time investor or malucia’s and
45:04
ever since then those economists are
45:06
trying to best meet the causes of the
45:08
business cycle
45:08
why is this breakdown in two different
45:11
schools of thought those who blame the
45:13
market economy and
45:15
revolution it was a blanket banking
45:17
system both courts and one of the
45:20
problems of correlation not just what
45:23
does not prove causation speak things
45:25
happen the same time could be one of the
45:26
other or both or either whatever so
45:29
these are the broad dog there’s those
45:32
inflaming the steel market economy and
45:46
within the Year award becoming those of
45:48
different subdivisions yeah one of the
45:53
first most famous sunspot Theory Stanley
45:57
Jevons distinguished economist at micro
45:59
field Stubb was telling I both feel it
46:02
was sorry was that those days it’s very
46:06
whether they cry see their people have
46:09
way to worry about that right they
46:10
weren’t worried about the boom that
46:11
worried about the Christ why this sudden
46:12
collapse relaxing credit classes banks
46:15
prices fall unemployment curve
46:18
bankruptcy two separate Center so who
46:21
was a serial every nine and a half years
46:23
or something this thing pops up pricey
46:25
therefore must be there some spots
46:35
you